UDYAM REGISTRATION, Starting a business is not a small task, we need to become a domain expert, need huge funds as capital, need office space and even we need continuous motivation and support. The growth of SMEs can only support the country’s economy, understanding this fact, the Government of India had passed the MSME Act and by that support SMEs. But to avail of the support and benefits, a business entity should register itself under Udyam Registration.
WHAT IS UDYAM REGISTRATION?
The term Udyam means Enterprise. This was introduced on 1st July 2020. Previously, the MSME Registration was named Udyog Aadhaar Registration. To make the process of filing more simple, the new registration process called Udyam was introduced.
By obtaining this Registration, your entity is Recognised as a Small Scale Unit by the Government of India. To obtain this, the Aadhar Card of the business owner is to be entered. The Udyam memorandum Acknowledgement is a nineteen-digit number.
WHICH ARE MICRO SMALL AND MEDIUM ENTERPRISES?
Micro Enterprises: A company’s investment is below 1 Crore of Investment and its turnover below 5 Crores.
Small Enterprises: An entity’s investment is more than 1 Crore and below 10 Crore of money. And its Turnover is above 5 Crore and not more than 50 Crore
Medium Enterprises: An entity’s investment is more than 10 Crore and below 50 Crore of money. And its Turnover is above 50 Crore and not more than 250 Crore
WHO CAN APPLY FOR UDYAM REGISTRATION?
Any person who wants to establish a micro, small or medium enterprise can file Udayam registration without any documents, papers, certificates or evidence through the UDYAM registration portal.
After the registration, you will get a permanent identity number, namely, Udyam Registration Number and an e-certificate which is called Udyam Registration Certificate.
WHO CAN NOT OBTAIN UDYAM REGISTRATION?
So it is that a Trading business cannot register under Udyam Registration. So a wholesaler or retailer or import and export business cannot obtain.
What are the documents required for udyam registration
No physical documents or xerox are required to upload or submit. All you need to do is fill in the correct details in the form to register your enterprises. If you provide any improper or false details, you will be penalized and punished under section 27 of the Act. The mandatory details you need to upload are,
- Name and basic details
- Aadhar Card number
- PAN Card number
- GSTIN number
- Bank Account Details
What is the process of udyam registration:
Step 1: Visit the Online Portal of Udyam/MSME Registration
On the home page of the MSME portal, click on “for new entrepreneurs who are not registered yet as MSME or those with EM-2”. Then a new page will open.
Step 2: Aadhar Card verification by entering the OTP
On this new page, fill in the applicant’s Aadhar number and the applicant’s name. Click on “validate and generate OTP”. The OTP will then be sent to the registered mobile number of the Aadhar card. Fill in the OTP number correctly.
Step 3: Verify the PAN Details
After finishing the second step, you will be taken to the next page, in that page select the nature of your business, and enter the PAN number and other necessary details. After checking the details, click on “Validate PAN”.
Step 4: Fill in the form
After validating the PAN “UDYAM Registration form” will appear. In it, you have to enter your name as per the PAN/Aadhar, email id, phone number, social category, gender and other necessary details. After filling in and checking the details, click on “Submit and get final OTP”
Step 5: Receive reference number
Once you have successfully registered, a “Thank you” note and a reference number will appear. You can print the page for your reference.
ADVANTAGES OF UDYAM REGISTRATION:
- Fully digitalized and paperless
- No need to upload physical documents
- E-certificate will be issued with QR code
- Permanent registration no need to renewal
- Obtain easy registration on Government e-Market (GeM) and SAMADHAN Portal
- You can get some other scheme benefits Such as
- Credit Guarantee Scheme (CGS)
- Public Procurement Policy (PPP)
- Government tenders and Protection against delayed payments
- Priority Sector Lending (PSL) from banks
REASON TO CANCEL UDYAM REGISTRATION / MSME:
There are many reasons to cancel existing micro, small and medium enterprises, they are: If the composite criteria of investment and turnover exceed the limits, or if the objectives of the business may change, or the owner may intend to start a new business if there are any losses in the current business.
HOW TO CANCEL UDYAM REGISTRATION / MSME:
Firstly, you need to log in to the official MSME portal, on the right-hand side of the home page you will see the “Update/Cancel option”, click on it then, you will be taken to the next page. Enter your MSME registration number. Select the “Cancel option”, give the reason for cancellation and submit. You will get the OTP. Once the OTP is entered correctly, your old MSME will be cancelled.